Peroxisomes contain oxidases, which generate hydrogen peroxide, and catalase, which degrades this toxic compound. Another characteristic function of each eukaryotic peroxisome, from yeast to man, is fatty acid -oxidation. However, a variety of other metabolic pathways are also located in peroxisomes. In fungi, peroxisomes contain enzymes involved in catabolism of unusual carbon and nitrogen sources (methanol, purines, D-amino acids, pipecolynic acid, sarcosine, glycolate, spermidine, etc.), as well as biosynthesis of lysine in yeasts and penicillin in mycelial fungi. Impairment of the peroxisome structure and functions causes many human disorders. Similar defects were identified in yeast mutants defective in peroxisome biogenesis. Peroxi- some biogenesis has been actively studied using unicellular and multicellular model systems over the last two decades. It was observed that many aspects of peroxisome biogenesis and proteins involved in the process display striking similarity among all eukaryotes from yeasts to humans. Yeasts provide a convenient model system for this kind of research. The review summarizes the data on the molecular events of peroxisome biogenesis, the functions of peroxine proteins, the import of peroxisomal matrix and membrane proteins, and the mechanisms of peroxisome division and inheritance.